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EU policymakers are discussing a proposal similar to the US Volcker rule that would restrict banks' proprietary trading. However, the proposal, which is being finalised by EU Internal Market Commissioner Michel Barnier, is less strict than the US version and is designed to ensure approval by EU member states.

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EU lawyers said it would be against the law to exempt UK banks from proposed EU rules that would curb risky trading. Michel Barnier, internal markets commissioner for the EU, has proposed a law that would limit proprietary trading by banks. Britain expected that it would be exempt from certain parts of the measure due to its Vickers rule, which requires UK banks to "ring fence" retail divisions to protect customer money.

The German Finance Ministry and financial regulator BaFin are increasing pressure on Deutsche Bank to overhaul its corporate culture. In response, the bank has recruited a compliance chief, developed barriers between trading operations, banned some employees' use of chat rooms and established oversight committees. However, officials say the bank has not done enough.

The Federal Reserve said that because it is unlikely to complete the Volcker rule by the 21 July deadline, US banks will have until at least 21 July 2014 to ease into the measure's restrictions on investing and trading. Regulators, who spoke out to calm Wall Street, said they will leave open the option of extending the compliance period further.

Michel Barnier, internal-market commissioner for the EU, plans to discuss with US Treasury Secretary Timothy Geithner the US' lack of rules restricting bankers' bonuses. The EU implemented such rules, while the US opted for "non-binding measures" that leave "too much latitude" for financial institutions, Barnier's spokeswoman Chantal Hughes wrote. Barnier is also warning the US to keep up with Europe's regulatory reforms.